PEB in the US versus doing PBS in India?
It’s 15% versus 28% (Contribution margins). From an EBIT point of view, we expect going forward about 10% in India and about 15% in the US for the metal building business.
US market leader in this space : Cornerstone or Ukor. They usually do 6%-8% EBIT margins.
For Pennar :
And our engineering is all done in India for that. While we have our design teams there, most of the high manners get done in India. And there’s significant cost arbitrage based on that.
Another reason why our margin would be a little bit better than their margins would be the fact that we can also backward integrate into other metal products. So our more diverse steel buying experience also gives us an additional margin.
Lower Cost Advantage for Pennar vs Market leaders in PEB
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